Bitcoin drives digital asset market gains as Grayscale selloff slows

The digital assets market grew during the week that began on Jan. 29, with global digital assets under management reaching $53 billion. The gains were largely due to investments in Bitcoin (BTC), according to alternative asset manager CoinShares. 

Inflow into the digital asset market amounted to $708 million in the week, with $703 million of that amount moving in the United States. This compares with a $499.7 million total outflow during the week of Jan. 22. BTC accounted for 99% of all market inflows during the week of Jan. 29, totaling $703 million, compared to a BTC outflow of $5.3 million.

Inflows into all exchange-traded products came to $8.2 billion, down from $10.6 billion in the previous week. The United States saw the most action, with $721 million coming in. That figure compared favorably with the previous week’s $408.8 million U.S. outflow.

The new U.S. market for BTC spot exchange-traded funds (ETFs) saw a total of $1.7 billion come in, down from a weekly average of $1.9 billion since their launch on Jan. 11. Nonetheless, the market is growing:

“This [inflow into U.S. BTC ETFs] has been offset by outflows from incumbent issuers, which total US$6BN, but data highlight a significant reduction in momentum of these outflows.”

The Grayscale Bitcoin Trust (GBTC) ETF sold off $926.7 million of BTC, and ProShares sold $108.9 million of BTC, but those outflows were offset the iShares (BlackRock) and Fidelity ETFs, which added $1.6 billion between them.

Digital asset investment products saw large inflows totalling US$708m last week!

This brings year-to-date inflows to US$1.6bn and total global assets under management to US$53bn.

Trading volumes in ETPs fell to US$8.2bn (compared to US$10.6bn the prior week), but… pic.twitter.com/phsy5zjnTf

— CoinShares (@CoinSharesCo) February 5, 2024

The BTC price took a hit last week with indications that the U.S. Federal Reserve may keep interest rates high for the foreseeable future. 

Related: Riot, TeraWulf and CleanSpark best-positioned miners for Bitcoin halving — CoinShares

Per CoinShares data, the Solana blockchain topped its competitors with $13 million coming in, compared to Ethereum’s $6.4 million and Avalanche’s $1.3 million. Ether (ETH) saw an outflow of $6.4 million.

Canada saw the biggest outflow nationally, with $31.3 million being traded away. Sweden came in second with $8.2 million in outflows. Canada and Sweden saw outflows the prior week as well, along with many countries, but the outflow gained momentum in Canada alone. It was reversed in Germany, Switzerland and the United States. Switzerland saw a dramatic turnaround, with $59.8 million going out two weeks ago and $20.9 million coming in last week.

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